Illumina Inc (ILMN)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	4,372,000	4,504,000	4,584,000	4,526,000	3,239,000
Receivables	US$ in thousands	735,000	734,000	671,000	648,000	487,000
Receivables turnover		5.95	6.14	6.83	6.98	6.65

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,372,000K ÷ $735,000K
= 5.95

The analysis of Illumina Inc's receivables turnover reveals a relatively stable performance over the past five years. The company's receivables turnover ratio has ranged from 5.95 to 6.98, indicating that on average, Illumina collects its receivables approximately 6 to 7 times a year.

The minor fluctuations in the receivables turnover ratio suggest that Illumina has been effective in managing its accounts receivable collection process. A higher turnover ratio generally indicates that the company is efficiently converting its credit sales into cash, which is a positive indicator of liquidity and operational efficiency.

However, a decreasing trend in the receivables turnover ratio from 2023 to 2024 may raise some concerns. This decline could potentially indicate challenges in collecting receivables promptly or changes in the company's credit policies. It would be advisable for Illumina to further investigate the reasons behind this trend and take necessary actions to improve its receivables management efficiency.

Overall, while Illumina's receivables turnover ratio remains within a reasonable range, monitoring this metric closely and implementing strategies to maintain or enhance efficiency in receivables collection will be crucial for sustaining healthy cash flows and working capital management.